Australian Bank Traders Get A Comical Slap On The Wrist, Must Attend "Ethics Course"

I'm not sure whether to post this as a piece of comedy or as news so crazy that it leaves one dumbfounded. As I browsed the main stream news this morning (something I hardly do once a week now as I've found it more and more insufferable in terms of it's bias and cheek) I came upon this gem that I had to share.

NAB and ANZ Bank traders to get ethics crash course

I'll quote the main points below but bank traders will now be required to undertake ethics lessons from third party providers as a consequence of admitting to attempted unconscionable conduct. This comes "after ASIC had alleged the banks attempted to rig the bank bill swap rate (BBSW), a critical benchmark interest rate."

According to the article,

ANZ Bank and National Australia Bank traders must undergo face-to-face training in ethics and how to look after their customers' interests, under deals struck with the corporate watchdog. As part of the settlements both banks this month reached with the Australian Securities and Investments Commission, which had alleged interest-rate rigging, the two lenders have pledged to overhaul their internal policies and training.

It does not appear that the individuals involved received any financial or otherwise discouraging reprimand, with the NAB & ANZ rather paying 50 million each in fines. This seems to be cover, with no personal liability, unethical behaviour is not discouraged. Would you be deterred from speeding of your employed paid all of your speeding fines?

On top of those penalties, each bank has signed a court-enforceable undertaking, to deter a repeat of the misbehaviour. The undertakings were revealed on Monday night, and they include various programs targeted at the behaviour of traders working in the BBSW market. One condition of each undertaking is for the bank to introduce a mandatory face-to-face training program, which must be run by an external and independent provider, and include a compulsory test.

Now, in my mind these fraudulent behaviours occurred because they were potentially profitable and were likely to go unpunished, not because of some fundamental inability to determine right from wrong. I wouldn't expect a rapist to be punished by having to write "rape is bad" on a blackboard 1000 times. An adult in society is expected to have a basic understanding of these big ethical issues and it's my opinion that this slap on the wrist "after school detention" style punishment really just adds insult to injury.

The training program, which would be for traders and supervisors in the BBSW part of each bank, and it would include "ethics and conflicts of interest"; "the need to safeguard the interests of customers and counter parties," and "compliance with the Corporations Legislation in respect of trading on markets for fixed income products." The undertaking for ANZ also included a commitment by the bank to provide compulsory compliance training for suspended employees who were involved in the BBSW market. It said that ANZ would commit to keeping these employees suspended from trading or issuing prime bank bills until they had completed compliance training, and it would review each employee's pay, and whether "it might be appropriate to redeploy them to different roles."

How does one get to a trading position within a major bank without understanding "the need to safeguard the interests of customers and counter parties"? You don't. As I say, these crimes are ones of opportunity, not ones of ignorance. How does the system not recognise this? How is this not publically obvious?

Earlier this month, Federal Court Justice Jayne Jagot said the public should be "shocked, and indeed disgusted" by the behaviour of National Australia Bank and ANZ Bank, said as she approved settlements between the banks and corporate regulator. Under their settlements with ASIC, ANZ and NAB both agreed to pay a $10 million fine, a $20 million payment towards ASIC's costs, and a $20 million contribution to a financial consumer protection fund. Westpac is the only major bank that is contesting ASIC's allegations of interest rate rigging, in a case that continues in Melbourne.

I'd put it to Justice Jagot that fraud is the banking business model. You cannot separate the two any more than a coffee store can be separated from it's coffee beans. This system is to serve the banks & training in ethics as a tool of reprimand to protect the public is comical.